When you owe more money than you can repay you may decide to file for bankruptcy. Bankruptcy filings may be made by either individuals or companies in a federal court. Filing for bankruptcy allows you to either have your debts discharged (erased) or to set up a payment plan so you can repay those people who you owe money. While bankruptcy may be the right solution in some situations, it has long term consequences, such as a bad mark on your credit report. It’s harder to obtain new loans when you have filed for bankruptcy.
A homeowner is worried the bank will foreclose on his home so he is thinking of filing for bankruptcy. He does have more income coming in a few months, so bankruptcy might be avoidable. He can work with emergency housing counseling to save his house which can help avoid bankruptcy.
A "no doc" loan simply means that the lender doesn't require documents from you to verify certain information, like your income, place of employment, or other information that you've put on your application. No doc loans are legitimate loans, offered by some of the biggest lenders around. Typically you'll pay a quarter of a point more in interest rate for a "no doc" loan.
A single mother is getting back on her feet after filing for bankruptcy because of unexpected medical expenses. She had to sell her house to pay off her debt, but now she'd like to start planning to buy a new home and save for retirement. She has good income, but she needs to continue to raise her credit score and keep putting any extra money aside to save for a house.
Once new bankruptcy laws take effect, it won't be easy for people to spend recklessly then discharge all of their debt. The shame that for years was associated with bankruptcy has largely been erased as society has changed. A few months after a bankruptcy is discharged, new credit card applications find their way into the mailbox, and for some, the cycle begins again.
A homeowner is concerned about her boyfriend's debt. They own a home together, but he is facing large medical bills. Because they are not married, the co-owner is not responsible for the debt but their equity in the home may be at risk.
How is it best to pay off an auto loan after bankruptcy? This car owner wants to use his mother's credit card offer to pay off his pre-bankruptcy, high-interest auto loan. Before using the offer to pay off the auto loan, he should take a look at his finances and understand what led him to bankruptcy in the first place.
Homeowners were served with foreclosure papers - is filing for bankruptcy their best option? Ilyce and Sam tell the homeowners not to file for bankruptcy, but to talk with their mortgage lender about paying their mortgage, even though they have been served with foreclosure papers. Ilyce and Sam say bankruptcy should be the homeowners' last option, despite being served with foreclosure papers.
Student loans are not usually forgiven through bankruptcy. Even after filing for bankruptcy, you are obligated to pay off educational loans. By not paying off student loans, you are risking ruining your credit history. Check your credit score to see what kind of affect student loans and bankruptcy have had on the credit report.
Bankruptcy is a black mark on your credit and won't allow you to get a loan at the kind of interest rates offered to buyers with good credit. Having a bankruptcy on your credit will mean paying anywhere from 2 to 5 percent above the going rate. To improve your credit history after a bankruptcy, know your credit score so you can work to improve it as quickly as possible.
By the end of 2001, more than 2 million recent college graduates were expected to begin paying back billions in student loans. Which is fine, if you found a job after graudation. But the poor economy means out of work grads are having a tough time
making ends meet. Money and real estate expert Ilyce Glink has some suggestions on making the numbers work.